New investor values CitizenM hotel group at $2.6B

Sovereign wealth fund will acquire a 25% stake in the Dutch hotel group

TRD NATIONAL /
Mar.March 31, 2019 11:00 AM

Singapore’s sovereign wealth fund has acquire a 25 percent equity stake in CitizenM (Credit: iStock)

Singapore’s sovereign wealth fund has acquired a 25 percent equity stake in CitizenM, a chain of 15 boutique hotels based in the Netherlands.

CitizenM said the undisclosed investment gives the hotel company an enterprise value of €2 billion, according to the Financial Times.

Founded in 2008, CitizenM targets business travelers seeking short stays and was the first hotel company to list properties on Airbnb, the popular vacation rental platform. Last year, the group opened its second boutique hotel in New York. The hotel group has three locations planned for Miami. Other U.S. cities where CitizenM has opened hotels include Boston and Seattle.

Rattan Chadha, founder and executive chairman of CitizenM, said 15 potential investors, mostly from North America, showed interest in acquiring a major equity stake in the company. GIC won out due to its experience in hospitality, the Times reported.

Last year, the fund joined a consortium that paid €4.4 billion for a majority equity stake in the real estate arm of European hotel group, Accor. Close to a fifth of GIC’s $100-billion investment portfolio consists of real estate and private equity.

The deal comes as another Singaporean sovereign wealth fund, Temasek Holdings, is in talks to buy Eastdil Secured from Wells Fargo. [FT] – Mike Seemuth


Related Articles

arrow_forward_ios
A mass timber project in Cleveland is now under construction and could be the nation’s tallest when completed. Harbor Bay Real Estate Advisors’ Intro development will rise nine stories with 298 residential units (Credit: Harbor Bay Real Estate Advisors)

Mass timber project in Cleveland could be nation’s tallest

Mass timber project in Cleveland could be nation’s tallest
Joy Construction’s Eli Weiss (left), Maddd Equities’ Jorge Madruga (top), and Drew Katz (right) with 20 Bruckner Boulevard in the Bronx (Getty; Google Maps)

“Dream” comes true for long-vacant Bronx ice house

“Dream” comes true for long-vacant Bronx ice house
“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space

“We’re not in the business of land-grabbing:” Hana CEO on the future of flex space
The Hotel Indigo Lower East Side at 171 Ludlow Street and Rotem Rosen (Credit: Hotel Indigo)

Tallying crisis’ toll on MRR Development’s Hotel Indigo

Tallying crisis’ toll on MRR Development’s Hotel Indigo
Photo illustration of Sen. Brian Kavanagh (Credit: Kavanagh by Albin Lohr-Jones/Pacific Press/LightRocket, Getty Images, iStock)

Lawmakers skip #CancelRent in favor of more modest bills

Lawmakers skip #CancelRent in favor of more modest bills
The process for challenging property assessments is so antiquated, officials won’t do Zoom meetings. (iStock)

“A recipe for disaster”: Fighting property taxes in a pandemic

“A recipe for disaster”: Fighting property taxes in a pandemic
Andrew Florance, CEO of CoStar (Photo by Jeffrey MacMillan for the Washington Post)

EXCLUSIVE: CoStar’s Andy Florance on buying Ten-X, the future of office buildings and why brokers don’t need discounts

EXCLUSIVE: CoStar’s Andy Florance on buying Ten-X, the future of office buildings and why brokers don’t need discounts
An institutional investor’s sale of a 7 percent stake in an exchange-traded real estate fund reveals deep concerns about the sector. (Credit: iStock)

Mystery investor dumps big stake in real estate fund

Mystery investor dumps big stake in real estate fund
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...